Gold continued to climb, but the daily range remained tight. The market opened around 1825, and the price was basically jumped in a tight range between 1825-28 throughout the Asian & European sessions. Once the volume has started to pick up at the US session, gold finally crossed the 1828(1) resistance and reached a new 2 week high at 1835. The day finally ended at 1832, up by USD 7.
Although the overall volume has been low in the past few days, gold has been able to keep its upward momentum after all. The support trendline(3) can still be used as a reference. After the price clears the resistance at 1828 yesterday, the next target should be at around 1842(2), with 1835 providing S-T resistance in early tradings.
The overall texture on the daily chart hasn't changed much since yesterday. Gold is still traveling on an uptrend without any reversal signal appearing for the moment. As mentioned yesterday, the price is now tangling within the resistance zone between 1830-35(4), the price will need to break out from 1835 in order to proceed to the next target, trendline (5) near 1842. The US inflation figures may hold the key.
S-T Resistances:
1850
1840-42
1835
Market price: 1833
S-T Supports:
1828
1825
1820
Risk Disclosure: Gold Bullion/Silver ("Bullion") trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.
